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Dynamic Two-way Relationship between Exporting and Importing: Evidence from Japan

Dynamic Two-way Relationship between Exporting and Importing: Evidence from Japan

Abstract


In this paper, we investigate the dynamic nature of trading using Japanese firm-level data. Specifically, we examine state dependence and cross effects in exporting and importing. Our findings are as follows. First, we found significant state dependence and cross effects in exporting and importing. Second, those effects diminish over time. Third, such state dependence and cross effects are found to be market-specific. Furthermore, such market specificity is more significant in small and medium-sized enterprises. Last, past export/import intensity matters in the current trade status.

ERIA-DP-2014-08

Date

02 May 2014

Category

Trade , SMEs

Author

Kazunobu Hayakawa, Toshiyuki Matsuura

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